Apple has a raw materials crisis due to AI fever

The AI ​​boom is not only causing a shortage of GPUs, but is also draining the supply of basic raw materials. According to Nikkei AsiaApple is making efforts to source high-quality fiberglass fabric – an essential component to produce PCB printed circuit boards and chip substrates for iPhones and next-generation devices. Apple’s biggest problem is that the world’s most advanced fiberglass fabrics are now almost exclusively produced by the Japanese company Nitto Boseki (Nittobo).

Previously, Apple was one of the few companies to use Nittobo’s premium fiberglass fabric for its custom chip lines. However, the AI ​​wave completely changed this situation when large technology companies such as Nvidia, Google, Amazon, AMD and Qualcomm all simultaneously purchased materials from the same supply to serve high-performance AI chips. In addition, the sudden increase in demand from AI data centers caused Nittobo’s already limited production capacity to fall into a serious overload.

To ensure the supply chain for 2026 products, Apple must take a rare step. First, the company is said to have sent employees to Japan since fall 2025 to directly supervise at Mitsubishi Gas Chemical, the unit that produces chip substrate materials using Nittobo’s fibers. In addition, the company approached Japanese government officials for support in ensuring supply. Apple is also trying to evaluate smaller suppliers like Grace Fabric Technology.

Potential suppliers are trying to scale up production, but industry sources say achieving consistent quality according to Apple’s strict requirements remains difficult because each glass fiber must be thin, absolutely uniform and free of defects. The fiberglass fabric is embedded deep in the chip base and, once assembled, cannot be repaired or replaced.

Apple also considered using lower-grade glass fabric as a temporary solution, but experts say this is risky. Downgrading materials requires a lengthy validation process and does little to address the company’s supply shortfall in 2026.